DigitalBridge and Crestview Partners Acquire WOW!
In an impressive move, DigitalBridge Group, Inc. (NYSE: DBRG), a leading alternative asset manager focused on digital infrastructure, along with Crestview Partners, announced the completion of their acquisition of WideOpenWest, Inc. (WOW!), a major player in the fiber-broadband internet space.
The Significance of the Acquisition
This $1.5 billion transaction aims to propel WOW! into a new era by enhancing its capabilities in fiber deployments and network modernization initiatives. Jonathan Friesel, Senior Managing Director at DigitalBridge, expressed excitement about this acquisition, highlighting the firm's commitment to investing in network improvements and enhancing customer experiences. He noted this transaction opens up avenues for operational excellence and a connected experience that WOW! customers can rely on.
Strategic Flexibility and Growth Potential
Brian Cassidy, from Crestview Partners, emphasized that with this acquisition, WOW! will operate as a private company. This status is crucial as it provides the strategic flexibility necessary to compete effectively within its market and pursue long-term growth objectives. Cassidy believes that this investment will catalyze advanced technology deployment in various underserved regions.
Impact on WOW! Shareholders
As part of the acquisition, WOW! shareholders will receive $5.20 cash for each share they hold, which reflects the enterprise value of the deal. As a result of this acquisition, WOW!'s common stock is no longer publicly traded, marking a significant transition for the company.
Advisory Support for the Transaction
The transaction was supported by top financial advisory firms. Centerview Partners LLC provided financial advice to the special committee overseeing the WOW! Board's evaluation of this deal. Legal counsel was rendered by Wachtell, Lipton, Rosen & Katz. DigitalBridge and Crestview partnered with LionTree Advisors as their financial advisor while Morgan Stanley and Goldman Sachs played vital roles as structuring advisors.
Furthermore, Simpson Thacher & Bartlett LLP and Davis Polk & Wardwell LLP provided legal support for DigitalBridge and Crestview, respectively, ensuring the acquisition proceeded without legal hurdles.
A Deep Dive into DigitalBridge
DigitalBridge stands out in the investment world due to its dedication to digital infrastructure. With 30 years of experience in various sectors, including cell towers and data centers, the firm currently manages about $108 billion in infrastructure assets for its investors. Their strategy involves seeking investments that not only promise financial returns but also enhance the digital ecosystem for users worldwide.
About Crestview Partners
Founded in 2004, Crestview is a prominent private equity firm specializing in the middle market. Managing over $10 billion in capital commitments, Crestview partners bring together a wealth of experience in private equity, finance, and operations. Their targeted approach enables them to focus on three unique sectors: media, industrials, and financial services.
WOW! - A Leading Broadband Provider
WideOpenWest, abbreviated as WOW!, is known for delivering high-speed internet services and connectivity solutions to numerous markets in the U.S. This acquisition strategically positions WOW! to leverage more resources, enhancing its service offerings and speeding up the rollout of advanced technologies. WOW! provides various services, including high-speed internet, cable TV, and cloud solutions, making it a comprehensive provider for both residences and businesses.
Frequently Asked Questions
What was the total value of the acquisition of WOW!?
The acquisition amounted to approximately $1.5 billion, with shareholders receiving $5.20 in cash per share.
Why did DigitalBridge and Crestview want to acquire WOW!?
The acquisition allows for network expansions and modernization initiatives, enabling WOW! to enhance its service offerings and competitive position.
How does the acquisition affect WOW! shareholders?
WOW! shareholders will receive cash compensation for their shares as part of the agreement, and the stock will no longer be traded publicly.
Who were the advisors involved in the acquisition?
Centerview Partners served as the financial advisor for WOW!, while LionTree Advisors assisted DigitalBridge and Crestview. Legal counsel was provided by reputable firms for both sides.
What services does WOW! provide?
WOW! offers a range of services, including high-speed internet, cable TV, and various business communication solutions, positioning it as a leader in broadband provision.
